Brigitte De Wilde

1

Getting more value from FIN SWIFTNet overview

• Brigitte De Wilde
• Senior Product Manager
• SWIFTNet FIN

2
SWIFTNet messaging
Getting more value from FIN
SWIFTNet Release 6
Coexistence


3
Getting more value from FIN Growth areas
collateral management
1,400
Need for automation and standardisation We
have Standards, Sales collateral, business
practice documents etc
Bill
0
2000
2005
Total collateral in circulation
80,000
0
2000
2005
Number of collateral Contracts
4
Collateral communication between counterparties
1
2
3
4
5
Fully covered by SWIFT
5
Bilateral model communication needs

• Margin calls
• inform the cp of collateral to be posted/to be
  returned
• negotiate the collateral propose, approve the
  collateral, communicate the settlement details
• Reconcile the positions
• Substitution
• propose or request substitution of collateral
• Settlement
• instruct agent to deliver/receive the collateral

6
The SWIFT Bilateral Collateral Management Messages

• Margin call
• MT 503 Collateral Claim
• Negotiation
• MT 504 Collateral Proposal
• MT 507 Collateral Status and Processing Advice
• Dispute/reconciliation
• MT 506 Collateral and Exposure Statement
• MT 507 Collateral Status and Processing Advice
• Substitution
• MT 505 Collateral Substitution

7
Getting more value from FIN Growth areas
Syndicated lending
3
Set up legal framework or agreement
4
Book-building calculate Loan amounts/ advise
allocations
1
5
Notice of drawdown/renewal
Borrower
6
Advice of Rate and Amount Fixing
7
Advice of fee(s) due
Agent
Providers Of funds
2
Build syndicate
Covered by SWIFT
8
Getting more value from FIN Gap areas
High use
Low use
No use
Equities, fixed Income listed options
Investment Fund
Foreign exchange
IMI
Payments
Money Markets
Derivatives
Cash management
9
Gap areas / Benchmarking
Traffic breakdown Sent
Traffic breakdown Received
CAT 1 CAT 2 CAT 3 CAT 5 CAT 9
Benchmark distribution received
Benchmark distribution sent
Institution distribution sent
Institution distribution received
Currently being investigated
10
Getting more value from FIN SWIFT value-added
services - FIN Copy and FINInform
Resilience
Regulation KYC, MiFID, SOX, Basel II
Outsourcing
Risk management
11
Copy services on SWIFTNet FIN 2 copy modes

• Y-Copy
• Central point receives a copy of all or part of
  a message to authorise or prevent delivery to the
  addressee.
• Solution for clearing, netting and settlement of
  payments and other financial transactions.

• T-Copy
• Central point receives a copy of all or part of
  a message while the original message is
  immediately forwarded to the addressee, without
  waiting for authorisation
• Solution for risk, cash or collateral
  management, monitoring and reporting needs.

12
FINInform FIN Copy two complementing value
added services on SWIFTNet FIN
SWIFTNet FIN
FIN-Copy
FINInform
Authorisation/ Refusal (Y-Copy)
Service Administrator (SIC)
FINInform Service
Central point
Fin Copy CUG

• Sender AND receiver part of service
• Copy triggered by sender (SIC)
• Copy to Service Administrator
• T and Y copy modes
• Copy paid by sender
• Full or partial copy, filtering

• Sender AND/OR receiver part of service
• Copy triggered by membership pattern
• Copy to a selected Central Point
• T copy only
• Copy paid by Service Administrator
• Full or partial copy, filtering

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FINInform for global risk management
FINInform for regulatory reporting
FINInform for resilience
MT 700
MT 700
FINInform
Any bank
MT 700
MT 096 (incl. MT 700)
MT 700
Any bank
ABC Headquarters (FINInform Administrator
Central point)
ABC Back-up site (Central point)
Regulator (Central point)
14
FINInform for resilience (in case of V-shape)
Central bank wants all payments received in
V-Shape to be copied in real-time to their warm
back-up site
MT 103
MT 103
FINInform
Sender
Central Bank main site (FINInform
Administrator)
MT 096
Central Bank back-up site
15
FINInform for resilience (in case of T or Y-Copy)
Receiver
Sender
FINInform
FIN Copy
1. FIN Copy to authorise Payment
Copy of MT ( authorisation details)
MT 096
Full or partial copy (MT 096)
Authorisation (MT 097)
Central bank 1st or 2nd Backup site
2. FINInform to copy authorised payments to
backup site in real-time
Central bank Main site (FINInform Administrator)
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FINInform a value-added service you can use
today!
Service administrator

• No one-time set-up fee, no minimum volume
• Annual fee based on of participants
• Copy price equal to FIN non-reporting price
• Contributes to global tier calculation
• Options full/partial copy, filtering

Central point
Service users

• not always the Service Administrator
• not counted as participant
• must be able to receive MT096

• no fee
• no technical requirement
• no impact on messaging flows!

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Pricing principles
FIN Copy
FINInform
Annual recurring Tiered on number of service
participants
One time fixed
Set-up/ Maintenance fee
Billed to service administrator
Billed to service administrator
Tiered on total volume of copies handled in
service
Tiered on global tier of service administrator
Variable usage fee
Intra vs inter institution
Y versus T copy
Billed to sender included in calculation of its
global tier
Billed to service administrator included in
calculation of its global tier
Surcharges (options)
Partial / Full copy delivery notification
Partial / Full copy Filtering
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FIN Copy pricing
Charged to Service Administrator
Charged to sender of original message
19
FINInform pricing
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SWIFTNet messaging
Getting more value from FIN
SWIFTNet Release 6
Coexistence


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Key new features of release 6.0
InterAct
Browse
FileAct
Changes
Area
FIN
1. Mandatory SWIFTNet FIN security upgrade 2.
Mandatory replacement of BKE with RMA 3.
Introduction of new SWIFTNet PKI policy-id
SWIFTNet Phase2 support
? ? ?
?
?

Enhanced SWIFTNet FileAct standardisation
4. Mandatory use of structured request types 5.
Mandatory use of file compression indication 6.
Enhanced usage guidelines and rules
? ? ?
22
Key new features of release 6.0 (contd)
InterAct
Browse
FileAct
Changes
Area
FIN
7. Support for HSMs 8. Enhancements to RBAC
9. General security enhancements
? ? ?
? ? ?
? ? ?
Other functional enhancements
10. SWIFTNet InterAct validation
enhancements
?
Other functional enhancements
11. Increase of maximum file size for
SWIFTNet FileAct store-and-forward 12.
Enhancements to central routing features 13.
Easier monitoring/management of SWIFTNet
Link 14. Enhanced technical header validation 15.
General SWIFTNet maintenance
? ? ?
? ? ? ?
? ? ? ? ?
?
23
Moving SWIFTNet up the value chain2002
Platinium (advanced del. control, copy)
Functional value
Gold (store and forward, options)
Silver (real-time)
Secure pipe
Content aware
SWIFTStandards
Business value
24
Moving SWIFTNet up the value chain2002
Platinium (advanced del. control, copy)
Functional value
Gold (store and forward, options)
Silver (real-time)
Secure pipe
Content aware
SWIFTStandards
Business value
25
Moving SWIFTNet up the value chain2002
Platinium (advanced del. control, copy)
Functional value
Gold (store and forward, options)
Silver (real-time)
Secure pipe
Content aware
SWIFTStandards
Business value
26
Moving SWIFTNet up the value chainFrom 2002 to
2004
Platinium (advanced del. control, copy)
Functional value
Gold (store and forward, options)
Silver (real-time)
Secure pipe
Content aware
SWIFTStandards
Business value
27
Moving SWIFTNet up the value chainFrom 2004 to
2007
Platinium (advanced del. control, copy)
Functional value
Gold (store and forward, options)
Silver (real-time)
Secure pipe
Content aware
SWIFTStandards
Business value
28
FileAct in rel. 6
Sender DN
CITI US 33
Receiver DN
BANK IT SR
Request Type
pacs.001.001.01
File info
compressionnone
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Moving SWIFTNet up the value chainBeyond 2007
Platinium (advanced del. control, copy)
Functional value
Gold (store and forward, options)
Silver (real-time)
Secure pipe
Content aware
SWIFTStandards
Business value
30
SWIFTNet messaging
Getting more value from FIN
SWIFTNet Release 6
Coexistence


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Payments areaNeed for coexistence and
interoperability
Payment Initiation
MT 101
CoreCreditTransferInitiation
Credit Transfer
MT 103
CreditTransfer
Intraday Reporting
MT 900/910
Advice
End of Day Reporting
MT 940/950
Statement
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Payments areaNeed for coexistence and
interoperability
Payment Initiation
and so on ...
Credit Transfer
Intraday Reporting
End of Day Reporting
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Specific scenarioMX Payment Initiation to MT
Credit Transfer
Payment Initiation
CoreCreditTransferInitiation
Credit Transfer
MT 103
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MX Payment Initiation to MT Credit
TransferMapping translation
ltxutyutyuttxxgt ltyyytyyrtyygt ltxxgfhfhxxxgt ltxxxfhfg
hxgt ltxxxxxxstryhdfnxxxgt ltxxxxnbvnxxxgt ltxxnxxxgt
ltxhdhxxxxgt ltxxhcfxgt ltxxdhfxxxgt ltxxxdhdxxxgt ltxx
dddhdgt ltyydhzxyyygt ltxxbcbxxxgt ltxxxbsdxxgt ltxxxxxxb
xxxxgt ltxxxsdgsxxxxgt ltxdgxxxxgt ltxxbvxxxxgt ltxx
xxgt ltxxxgxxgt ltxxxgsdxxxgt ltxsdgsdxgt ltyyysdgsdyygt
ltxxxxsdgxgt ltxxsdgsxxgt ltxxxxsdfazrxxxxxgt ltxxxgsgxx
xxgt ltxxxbxbxxxgt ltxxcbxxxgt ltxxxxgt ltxzeexxxxgt
ltxxxxzaerazrxgt ltxzeexxxxgt ltxxxxzaerazrxgt
K
K
J
K
J
J
K
L
K
J
L
J
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Migration from MT to MX may take time
MXs available? testing piloting
2006
MTs
MXs
36
Migration from MT to MX may take time
Piloting OK? first MI goes live
2007
MTs
MXs
37
Migration from MT to MX may take time
Confidence grows? other MIs go live
2008
MTs
MXs
38
Migration from MT to MX may take time
Interoperability? translation pilot
2009
MTs
MXs
39
Migration from MT to MX may take time
Business case? SWIFTSolution pilot
Interoperability? translation live
2010
MTs
MXs
40
Migration from MT to MX may take time
Pilot OK? SWIFTSolution live
2011
MTs
MXs
41
Migration from MT to MX may take time
Market picks up? users grows
2012
MTs
MXs
42
Migration from MT to MX may take time
Users grows ? critical mass
2013
MTs
MXs
43
Migration from MT to MX may take time
Critical mass? translation removed
2014
MTs
MXs
44
Migration from MT to MX may take time
Migration completed? MTs removed
2015
MTs
MXs
45
Migration roadmap

• When will things happen for which business
  transaction?
• 2006, , 2010, .. 2015, , 2020, , ?
• Cash management, Investment funds, corporate
  payments (debit credit), pre-trade,
• Rolling plan, covering next 3 years
• As of when are MXs available?
• When where are MXs used (MIs, SWIFTSolution)?
• Are there official translation rules?
• When will MTs be removed?

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FIN Here to stay
'FIN is and will remain our core messaging
service for the years to come make the most of
it!
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Thank you!
Questions and answers